UK fund managers push for blockchain-traded funds: Financial Times

Quick Take

  • UK’s asset management industry is seeking approval of blockchain-traded funds that would issue digital tokens to investors.
  • Using blockchains’ digital ledgers to achieve greater efficiency in buying and selling mutual funds would save on costs, Investment Association says.

Britain’s asset managers are lobbying the government for a new fund category that uses blockchain technology, the Financial Times reported on Thursday.

The Investment Association, which represents the UK’s asset management industry, is seeking approval of blockchain-traded funds that would issue digital tokens to investors, the report said.

Using blockchains’ digital ledgers to achieve greater efficiency in buying and selling mutual funds would save on costs, the association told the FT.

The group is also backing formation of a task force to investigate how blockchain technology might facilitate new products and services.

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